Houses ‘cost eight times salary’
A new report by the National Housing Federation (NHF) shows that average house prices in England have risen to almost eight times the average salary. England’s Housing Crisis: The Facts points to an urgent need for an increase in the provision of homes for affordable rent and low-cost ownership. It shows that house prices have increased by 125 per cent since Labour was elected in 1997.
Regionally, the South West is shown to be the country’s most unaffordable area, with house prices at 9.5 times average salaries in the region. Meanwhile, North Easterners would need to be earning £31,207 to take out a mortgage on an average house – and the average salary in that region is £18,570.
Liz Atkins, director of strategy at NHF, says, ‘The property market may be cooling but for thousands of people it’s too little too late. Home ownership is now well beyond the reach of many moderate earners, including dual-income families.’ She concludes: ‘If we want to keep families and communities together and revitalise our towns, cities and villages, we need to build more affordable homes for rent and low-cost ownership.’
Buyers are coming back
Buyers, it seems, are coming back to the market, according to two new surveys. The latest report from Hometrack notes that the number of buyers registered on estate agents’ books rose by 6.2 per cent last month, only the second time that the number of registered buyers has risen since last year.
Hometrack’s figures indicate that in the London area viewings were up by 1 per cent from April 2004, while offers being made on properties were 13 per cent higher. The length of time taken to sell a property has fallen from 7.6 weeks to 7.4 weeks. Meanwhile, prices in the capital have largely recovered from the price drops witnessed at the end of last year and buyer commitment and confidence is stronger, with 35 per cent fewer transactions falling through.
The upsurge in sales has been stimulated by stable interest rates, an improvement in the selection of property for sale and a more realistic view of pricing on the part of vendors.
Meanwhile, Hamptons International, in its monthly market observation, finds that the return of the much-missed buyer is particularly pronounced in the southern counties. London, Hamptons says, is ‘leaping’.
One persistent problem in the market, the study finds, is shortage of homes in the market. ‘Although we report more new stock for sale,’ says the report, ‘the shortage continues in many regions, helping to support prices in these areas. Properties in some areas are achieving premium prices.
Strong demand is one sign that the present market is ticking over in a reasonably healthy manner. ‘There remains a good level of underlying activity in the market and our managers highlight the quality and commitment of buyers. Well-presented, realistically priced properties are finding buyers.’